The latest export and import figures illustrate the crisis in which China's economy is currently stuck: Contrary to expectations, exports are even down and imports are also declining. Trade has come to a standstill, particularly with global competitor the USA.
China's exports fell unexpectedly in October. As reported by the Beijing Statistics Office, the exports of the second largest economy fell by 0.3 percent in US dollars compared to October last year. Although analysts had expected a slowdown, they still expected exports to grow. They had expected an increase of up to 4.3 percent.
Imports also declined, falling by 0.7 percent compared to October of the previous year. Observers cited weak global demand as the reason for the decline. In addition, the continued strict corona restrictions in China would lead to ongoing problems in the supply chains. The Chinese export machinery had already lost momentum in the previous months.
China's trade with Germany also fell noticeably again in October by 5.7 percent. Chinese exports to Germany fell by 10.9 percent. China's imports from Germany, on the other hand, rose slightly by 0.5 percent. While Chinese exports to the European Union fell 7.7 percent, China's imports from Europe fell 5.1 percent.
China's foreign trade with the USA decreased particularly significantly - by 10.4 percent. Chinese exports to the US fell 12.6 percent, while imports from the US fell 1.5 percent.
The weak October trade numbers highlight the challenge for policymakers in China as exports are one of the few bright spots for the struggling economy. This increases pressure on manufacturing and threatens any meaningful economic revival amid ongoing coronavirus lockdowns, a struggling real estate market and global recession risks.
